We stayed at Hilton Sharks Bay in June 2003. The hotel was nice (if you like walking up & down hills all day). The food we found very very disappointing, some of it downright terrible.
We arrived home from the Hilton Nuweiba Coral this morning. Excellent. We got talking to people there who had been to Hilton Sharks Bay last October and they thought it was top rate. Apparantly the management had changed after we left and everything is now superb, so we may go back there next year.
The reef at Sharks Bay is great. You just walk about 20 or 30 yards along a plastic pontoon, climb down the ladder (or dive in), and the coral is right there in front of your eyes.